IE Business Daily Business news for the Inland Empire.
Menifee experienced strong sales tax growth during the fourth quarter of last year.
The city’s sales tax revenue during the last three months of 2015 was up 20.7 percent overall – and 12.9 percent if accounting aberrations are left out – compared with the fourth quarter of 2014, according to a statement on the city’s website.
That “substantial growth” happened primarily because of restaurants and other businesses opening in the city, along with ongoing construction there, Interim Development Director Jeff Wyman said in the statement.
All cities depend on sales tax revenue, but for a new city like Menifee – it incorporated in 2008 – sales tax revenue is especially important because it’s needed to pay for basic services like public safety, road improvements and traffic relief.
Menifee is expecting a $20 million drop in general fund revenue during the next five years. The town has been hurt badly by the loss of revenue from vehicle license fees, which the state diverted from cities in 2011.
Public safety currently accounts for 66 percent of Menifee’s general fund budget, according to the statement.
